Week in Review: Top newsmakers from the aluminium downstream sector

The week gone by has been marked by production updates, mergers, corporate decisions and quarterly result release by a few major companies from the aluminium downstream sector. The market is more or less in a balanced position; the quarterly results indicate a bullish trend and companies are ready to take risk with mergers and acquisitions, supply contracts, product expansions and management changes. Here are a few top headlines from the week.

Eric Roegner named President of Arconic Global Rolled Products 

Arconic announced that the company has named Eric Roegner, Chief Operating Officer of Investment Castings, Arconic Titanium and Engineered Products and President of Arconic Defense, as the President of Arconic Global Rolled Products (GRP), effective immediately.

Aleris reports 16% EBITDA growth in Q1 2017, positive outlook for Q2

Aleris Corporation reported results for the first quarter ended March 31, 2017. The company reported net loss of $35 million compared to $6 million YoY. Adjusted EBITDA of $52 million was up 16% from $45 million in Q1 2016.

The company also updates on the Merger of Aleris with Zhongwang USA that is expected to close in Q2 2017. However, there can be no assurance that the Merger will be consummated in the second quarter of 2017 or at all. The Merger Agreement may be terminated by Aleris Corporation or Zhongwang USA on or before May 29, 2017.

AMAG signs multi-year contract with Constantia Flexibles 

AMAG signed a multi-year contract with flexible packaging manufacturer, Constantia Flexibles on April 28 2017. The contract is for a delivery of minimum of 35,000 tonnes of aluminium coils per annum to Constantia’s Teich facility in Weinburg, Lower Austria. Teich is Constantia’s production site for packaging foils for food, pet food and pharmaceuticals.  

Notably, this contract also covers the "Closed-loop" recycling process that aims at maintaining sustainable carbon footprint over the product value chain. Under the contract Constantia Flexibles would directly return aluminium scrap to AMAG, thus retaining valuable material within the production loop. 

Japan’s KAAP increases production of forged aluminium suspension products 

Kobe Aluminum Automotive Products, LLC announced company’s newest expansion project in the South Central Kentucky Industrial Park in Bowling Green. The project involves an investment of $51.3 million for the production of forged aluminium suspension products. 

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Hulamin chairman expects growth in FY 2017, driven by stronger aluminium prices and healthy demand 

Chairman of Aluminium producer Hulamin Mafika Mkwanazi has positive prospects for the company’s 2017 financial year.  He expects a stronger product mix, increased utilisation of scrap metal and efficiency improvements, supported by a solid manufacturing performance to benefit profits for H1 2017. 

Norican Global announces complete acquisition of Light Metal Casting Solutions Group

Norican Global, a leading metallic parts enhancement company (by virtue of its ownership of both DISA and Wheelabrator), announced the completion of the Light Metal Casting Solutions Group (LMCS) acquisition.